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CRWD Shows Strong Rally Despite Recent Pullback, Bullish Momentum Continues

StockInvest.us, 1 month ago

CrowdStrike Technical Analysis of CrowdStrike Holdings, Inc. (CRWD)

CrowdStrike Holdings, Inc. has demonstrated a significant rally with a 186.54% gain from its year low of $97.26 to its last close at $276.27. The stock experienced a recent pullback, decreasing by 3.50% in the last trading session. Despite the dip, the technical indicators suggest a strong bullish trend, which is reinforced by the substantial distance between the 50-day moving average (DMA) at $234.95 and the 200-day DMA at $172.76.

The Relative Strength Index (RSI) stands at 64, which is below the overbought threshold of 70 but indicates solid momentum. Alongside, the Moving Average Convergence Divergence (MACD) is sitting at 5.03, maintaining a bullish crossover. The Average True Range (ATR) reflects moderate volatility with a figure of 2.91.

Investors should monitor the established support level at $273.77, which CRWD successfully tested in the previous session before closing slightly above it. Resistance is upcoming at $282.04, and surpassing this level could signal continued upwards movement. The next psychological ceiling would likely be the year high of $290.33.

Fundamental Analysis of CrowdStrike Holdings, Inc. (CRWD)

Fundamentally, CrowdStrike's market capitalization of approximately $66.35 billion reflects its heft in the cybersecurity sector. The stock's P/E ratio stands at a negative -4604.5 due to an EPS of -$0.06, signaling that the company is not currently profitable, which is not uncommon for growing technology-based firms as they prioritize expansion over immediate earnings.

The DCF valuation suggests the stock could be undervalued, as the consensus target is $224.35 with a high target prediction of $330, indicating potential upside. CrowdStrike also received a resoundingly positive outlook from analysts, with 30 analysts recommending a 'Buy' and none suggesting to 'Hold' or 'Sell.'

CrowdStrike Recent news coverage positions CRWD as an attractive portfolio addition due to its standing within the cybersecurity sector. The articles hint at the importance of cybersecurity investments and acknowledge CrowdStrike's position as an industry-leading player.

Short-Term Outlook

Regarding the short-term outlook, CRWD will likely see heightened interaction with its support and resistance levels. The nature of the previous day's pullback, as highlighted in one of the news articles, suggests that investors consider the dip as a potential buying opportunity within a bullish trend.

The next trading day might see an attempt to regain lost ground, especially if investor sentiment aligns with the pullback-buying strategy. However, an adverse price action that breaks the support level could prompt a reassessment of the short-term trend.

For the upcoming week, the technical indicators point to bullish momentum, which may help the stock to recover from the pullback and target the year high once again, particularly if broader market conditions remain favorable.

Overall Evaluation

Taking into account both the technical momentum and the fundamental growth potential of CrowdStrike Holdings, Inc., along with the upbeat analyst consensus and positive media coverage highlighting its strong market position, the stock evaluation leans towards 'Buy.' Investors might consider entry points after considering the pullback as an opportunity despite a lack of profitability at present, due to the strong growth prospects and the prevailing market sentiment around cybersecurity stocks.

However, as with any investment, caution is advised, and investors should monitor key technical levels, upcoming earnings in March, and any changes in market conditions or company fundamentals that could impact the stock's trajectory.

Check full CrowdStrike forecast and analysis here.